51. Adam’s Manufacturing has the following information available regarding one of the projects it is considering:    Initial investment $500,000   Net present value $80,000       The profitability index of this project is: A. 6.25B. .16C. 1.16D. .86   52. Richardson Corporation has the following information available regarding one of the projects it is considering:    Initial investment $800,000   Net present value $100,000       The […]

    51.Excess glucose is stored in the body as glycogen.  Where are these glycogen reserves primarily found? A)brain and red blood cellsD)liver and skeletal muscles B)red blood cells and liverE)kidneys and fat cells C)adipose tissue and brain   52.Which statement concerning glycogenolysis is FALSE? A) It is the process by which glycogen is broken down into glucose. B) It is a pathway that provides […]

    111.Comparing the cost of the same basket of goods in different locations: A. can create a price index to evaluate purchasing power across different locations. B. is based on the theory of purchasing power parity. C. can be used for international price comparisons. D. All of these statements are true. 112.The Big Mac index: A. is measured by The Economist. B. is a simple measure that indicates differing costs […]

  111) Refer to Figure 8-4. The firm is initially minimizing the cost of producing 1000 units of output. Suppose the factor prices then change such that the price of capital (K) falls and the price of labour (L) rises. If the firm decides to leave its output unchanged, it will now move toward the point A) A. B) B. C) C. D) D. E) […]

1.Which statement concerning solutions is FALSE? A) A solution is a homogenous mixture of two or more pure substances. B) A solution is composed of a solvent and one or more solutes. C) A solution has its components uniformly distributed throughout the mixture. D) A solution is likely to form when the solute and the solvent have similar polarities. E) A solution forms when the […]

  71.AU.S.citizenbuysateakettlemanufacturedinChinabyacompanythatisownedandoperatedbyU.Scitizens.InwhichofthefollowingcomponentsofU.S.GDPisthistransactionaccountedfor? a.consumptionandimports b.consumptionbutnotimports c.importsbutnotconsumption d.neitherconsumptionnorimports 72.IfaU.S.citizenbuysadressmadeinNepalbyaNepalesefirm,then a.U.S.consumptionincreases,U.S.netexportsdecrease,andU.S.GDPdecreases. b.U.S.consumptionincreases,U.S.netexportsdecrease,andU.S.GDPisunaffected. c.U.S.consumptiondecreases,U.S.netexportsincrease,andU.S.GDPincreases. d.U.S.consumptiondecreases,U.S.netexportsincrease,andU.S.GDPisunaffected. 73.WhenanAmericanhouseholdpurchasesabottleofItalianwinefor$100, a.U.S.consumptiondoesnotchange,U.S.netexportsdecreaseby$100,andU.S.GDPdecreasesby$100. b.U.S.consumptiondoesnotchange,U.S.netexportsincreaseby$100,andU.S.GDPincreasesby$100. c.U.S.consumptionincreasesby$100,U.S.netexportsdecreaseby$100,andU.S.GDPdoesnotchange. d.U.S.consumptionincreasesby$100,U.S.netexportsdonotchange,andU.S.GDPincreasesby$100. 74.AnAmericanretailerpurchased100pairsofshoesfromacompanyinMexicointhesecondquarterof2016butdoesnotsellthemtoaconsumeruntilthethirdquarterof2016.Inwhichquarter(s)does(do)thevalueoftheshoesaddtoU.S.GDP? a.thesecondandthirdquarters b.thesecondquarterbutnotthethirdquarter c.thethirdbutnotthesecondquarter d.neitherthesecondnorthethirdquarter 75.AnAmericanretailerpurchased500pairsofshoesfromacompanyinThailandinthesecondquarterof2016butdoesnotsellthemtoaconsumeruntilthethirdquarterof2016.WhichofthefollowingcomponentsofU.S.GDPisaffectedbythistransactioninthethirdquarterof2016? a.consumption,investmentandimports b.onlyconsumptionandinvestment c.onlyconsumptionandimports d.onlyinvestmentandimports 76.ThecityofAnnArborMichiganbuysapolicecarmanufacturedinGermany.IntheGDPaccountsthistransactionisincludedin a.ingovernmentexpendituresandexports. b.governmentexpendituresandimports. c.exports,butnotgovernmentexpenditures. d.imports,butnotgovernmentexpenditures. 77.WhenanEgyptianfirmpurchasesacementmixerfromSlovakia, a.Egyptianinvestmentdoesnotchange,Egyptiannetexportsdecrease,EgyptianGDPdecreases,Slovakiannetexportsincrease,andSlovakianGDPincreases. b.Egyptianinvestmentincreases,Egyptiannetexportsdecrease,EgyptianGDPisunaffected,Slovakiannetexportsincrease,andSlovakianGDPincreases. c.Egyptianinvestmentdecreases,Egyptiannetexportsincrease,EgyptianGDPisunaffected,Slovakiannetexportsdecrease,andSlovakianGDPdecreases. d.Egyptianinvestmentincreases,Egyptiannetexportsdonotchange,EgyptianGDPincreases,Slovakiannetexportsdonotchange,andSlovakianGDPisunaffected. 78.TheU.S.AirForcepaysaTurkishcitizen$30,000toworkonaU.S.baseinTurkey.Asaresult, a.U.S.governmentpurchasesincreaseby$30,000;U.S.netexportsdecreaseby$30,000;andU.S.GDPisunaffected. b.U.S.governmentpurchasesincreaseby$30,000;U.S.netexportsareunaffected;andU.S.GDPincreasesby$30,000. c.U.S.governmentpurchases,netexports,andGDPareunaffected. d.U.S.governmentpurchasesareunaffected;U.S.netexportsdecreaseby$30,000;andU.S.GDPdecreasesby$30,000. 79.ATexashouseholdreceivesaSocialSecuritycheckfor$1500,whichitusestopurchasea$40pairofshoesmadeinThailandbyaThaifirm,a$1240televisionmadebyaKoreanfirminKorea,and$220ongroceriesfromalocalstore.Asaresult,U.S.GDP a.increasesby$40. b.increasesby$220. c.increasesby$280. d.increasesby$1500. 80.AnAmericansoldierstationedinNorthCarolinareceivesapaycheckfromthefederalgovernmentfor$300,whichsheusestopurchasea$100MP3playermadeinChinabyaChinesefirmand$200forfruitandvegetablesfromalocalfarmersmarket.Asaresult,U.S.GDPincreasesby a.$200. b.$300. c.$500. d.$600.    

  81.ConsternationCorporationhasanagreementwithitsworkerstoindexcompletelythewageofitsemployeesusingtheCPI.ConsternationCorporationcurrentlypaysitsproductionlineworkers$8.00anhourandisscheduledtoindextheirwagestoday.IftheCPIiscurrently160andwas128ayearago,thefirmshouldincreasethehourlywagesofitsworkersby a.$0.25. b.$1.60. c.$2.00. d.$2.56. 82.SocialSecuritypaymentsareindexedforinflationusingtheCPI.ArecentnewspapereditorialclaimedthatSocialSecurityrecipientsareharmedbyyearsoflowinflationbecausetheydonotreceiveaslargeanincreaseintheirpaymentsastheydoinyearsofhighinflation.Whichofthefollowingstatementsiscorrect? a.Thenewspapereditorialiscorrectunderallcircumstances. b.ThenewspapereditorialiscorrectifthemarketbasketconsumedbySocialSecurityrecipientsisthesameasthemarketbasketusedtocomputetheCPI. c.ThenewspapereditorialcouldbecorrectifthepricesofthegoodsconsumedbySocialSecurityrecipientschangeatadifferentratethanthepricesofthegoodsinthemarketbasketusedtocomputetheCPI d.Thenewspapereditorialisincorrectunderallcircumstances. 83.OfSocialSecuritybenefitsandfederalincometaxbrackets,whichisindexed? a.Bothareindexed. b.OnlySocialSecuritybenefitsareindexed. c.Onlyfederalincometaxbracketsareindexed. d.Neitherisindexed. 84.NatecollectedSocialSecuritypaymentsof$220amonthin1985.Ifthepriceindexrosefrom90to108between1985and1986,thenhisSocialSecuritypaymentsfor1986shouldhavebeen a.$228. b.$238. c.$257. d.$264. 85.MarioncollectedSocialSecuritypaymentsof$250amonthin1985.Ifthepriceindexrosefrom90to108between1985and1986,thenherSocialSecuritypaymentsfor1986shouldhavebeen a.$268. b.$292. c.$300. d.$358. 86.SocialSecuritypaymentsareindexedforinflationusing a.theCPI. b.thePPI. c.theGDPdeflator. d.realinterestrates. 87.Whichofthefollowingstatementsiscorrectabouttherelationshipbetweeninflationandinterestrates? a.Thereisnorelationshipbetweeninflationandinterestrates. b.Theinterestrateisdeterminedbytherateofinflation. c.Inordertofullyunderstandinflation,weneedtoknowhowtocorrectfortheeffectsofinterestrates. d.Inordertofullyunderstandinterestrates,weneedtoknowhowtocorrectfortheeffectsofinflation. 88.Whichofthefollowingisnotcorrect? a.Iftheinflationrateexceedsthenominalinterestrate,thenthepurchasingpowerofaninterest-earningdepositfallsovertime. b.Ifthereisdeflation,thenthepurchasingpowerofaninterest-earningdepositrisesbymorethanthenominalinterestrateovertime. c.Thehighertherateofinflation,thesmallertheincreaseinthepurchasingpowerofaninterest-earningdeposit. d.Thepurchasingpowerofaninterest-earningdepositcanincreaseordecreaseovertime,butitcannotstaythesame. 89.Whichofthefollowingstatementsiscorrectabouttherelationshipbetweenthenominalinterestrateandtherealinterestrate? a.Therealinterestrateisthenominalinterestratetimestherateofinflation. b.Therealinterestrateisthenominalinterestrateminustherateofinflation. c.Therealinterestrateisthenominalinterestrateplustherateofinflation. d.Therealinterestrateisthenominalinterestratedividedbytherateofinflation. 90.Thenominalinterestratetellsyou a.howfastthenumberofdollarsinyourbankaccountrisesovertime. b.howfastthepurchasingpowerofyourbankaccountrisesovertime. c.thenumberofdollarsinyourbankaccounttoday. d.thepurchasingpowerofyourbankaccounttoday.    

  Figure 12-6     Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for Jason’s House of Apples.   32) Refer to Figure 12-6.  To maximize his profit, Jason should produce the rate of output indicated by point A) a. B) b. C) e. D) d.     33) Refer to Figure 12-6.  Jason is currently producing 20 thousand […]

  21) The demand for loanable funds curve shows the relationship between the quantity of loanable funds demanded and A) the real interest rate. B) the price level. C) the capital stock. D) depreciation. E) the expected rate of profit. 22) The demand for loanable funds curve shows the A) negative relationship between the interest rate and the quantity of loanable funds demanded. B) positive […]

  31) In the long run, the real interest rate is determined by A) Fed actions. B) the expected inflation rate. C) the nominal interest rate. D) saving supply and investment demand. E) the multiplier effect. 32) Which of the following statements about the ripple effects of monetary policy is FALSE? Monetary policy can A) raise the federal funds rate, thereby decreasing the quantity of […]